ABS

  • Risk transfer round-up - 3 November

    Two US public pension funds in Arizona and Pennsylvania are rumoured to have completed a capital relief trade each, although the exact identity of the funds could not be confirmed. According to one industry insider: "The risk transfer market is private, so the details of the transactions are sketchy. However, if I am hearing of these deals, I suspect there .......

    News 3 November 2017

  • Pre-emptive lawsuits envisaged

    The threat of significant losses has sparked concern that the US subprime auto ABS sector could see pre-emptive legal actions emerging. With spreads continuing to tighten in the face of increasing delinquencies, investors may start to question whether they are being adequately compensated for the risks involved.

    Joe Cioffi, partner at Davis and Gilbert, says that while losses in subprime .......

    News Analysis 3 November 2017

  • Balance sheet optimisation continues

    Rabobank has transferred part of the risk on a €3bn commercial credit portfolio to pension fund Pensioenfonds Zorg en Welzijn (PFZW). The synthetic securitisation forms part of the lender's efforts to optimise its balance sheet and follows the disposal of a €600m mortgage portfolio to La Banque Postale (SCI 27 October).

    Bas Brouwers, Rabobank cfo, confirms: "This transaction is part .......

    News Analysis 3 November 2017

  • ISPV approach published

    The UK PRA has published its final approach and expectations in relation to the authorisation and supervision of insurance SPVs (SCI passim). In light of public consultation, a new safeguard has been introduced that removes the need for multi-arrangement insurance SPVs (MISPVs) to notify supervisors of proposals to assume new risks before they take effect. The authority has also issued .......

    News 2 November 2017

  • Using insurance to lay off risk

    Alan Ball and Fiona Walden, senior underwriters leading the structured risk solutions team at Liberty Specialty Markets, answer SCI's questions

    Q: How did Liberty Specialty Markets become involved in providing capital relief-driven transactions?
    A:     We're one of the leading insurers operating in the London insurance market, providing both specialty insurance and reinsurance. Our structured risk solutions team was set up just .......

    The Structured Credit Interview 2 November 2017

  • Unique SLABS relaunched with revisions

    The first securitisation of income-contingent repayment (ICR) student loans originated by the UK government (SCI 29 March) has been re-jigged after being postponed due to the UK general election in June. Dubbed Income Contingent Student Loans 1 (2002-2006), the £3.94bn ABS is the first of its type globally and has been relaunched with structural changes and revised provisional ratings.

    Rabobank .......

    News 1 November 2017

  • Secured warehouse use broadens

    Be-Spoke Loan Funding (SCI 3 October), a direct lending warehouse facility set up as a cashflow securitisation, exemplifies one of the ways in which secured warehouse financing continues to evolve. While the sector has already demonstrated adaptability, rising interest rates could pose a significant challenge.

    Warehouse funding is mainly used as either an acquisition bridge facility, a private facility for .......

    News Analysis 1 November 2017

  • Protection 'gap' targeted

    Plans to establish Singapore as an Asian insurance-linked securities hub were unveiled today at the Singapore International Reinsurance Conference. Lim Hng Kiang, minister for trade and industry and deputy chairman of the Monetary Authority of Singapore (MAS), outlined a three-pronged strategy aimed at closing what he described as a "protection gap" in the region.

    "As Asia continues to grow in .......

    News 1 November 2017

  • Loss coverage ratios scrutinised

    Loss coverage ratios on a number of World Omni Auto Trust class A ABS bonds should have been adequate before the recent introduction of a cash-trapping mechanism, according to a new Wells Fargo study. However, the analysis suggests that loss coverage ratios on class B bonds have been lagging, particularly for 2016 vintage deals.

    Fitch recently affirmed its ratings on .......

    News 31 October 2017

  • First Aussie personal loan ABS prepped

    The first Australian personal loan ABS is marketing. The A$542.5m Latitude Australia Personal Loans Series 2017-1 transaction (see SCI's deal pipeline) securitises a portfolio of Australian unsecured and partially secured personal loans originated by Latitude Personal Finance.

    Moody's has assigned preliminary ratings of Aaa to the A$331.5m class A notes. It has rated the A$56m class B, A$40m .......

    News 31 October 2017

  • Euro secondary strengthens

    Levels continue to strengthen across the European securitisation secondary market.

    October has been another month of more of the same and November looks unlikely to differ in the short term as technicals still hold sway and volumes remain relatively light. Demand continues to outstrip supply with holders unwilling to release seemingly ever-improving paper and other participants, especially dealers, very keen .......

    SCIWire 31 October 2017

  • Legal issues weigh on Earnest acquisition

    Navient's recent acquisition of Earnest is seen as a bold move, given its ongoing legal challenges (SCI 13 October). While the takeover could lead to a surge in refi student loan ABS from the firm, investors in future transactions may need to consider whether they are buying into additional risks.

    Joe Cioffi, partner at Davis & Gilbert, says: "I think .......

    News Analysis 30 October 2017

  • STS rules welcomed

    The European Parliament last week approved new common rules for securitisation in the EU, while also finalising the simple, transparent and standardised (STS) framework. The long-awaited legislation has been welcomed by the market, although it features numerous legal uncertainties, which are expected to be resolved at the regulatory technical standards level.

    "It's very positive that regulators identify, define and support .......

    News Analysis 30 October 2017

  • Jet ABS 'postponed'

    Global Jet Capital's debut securitisation, Business Jet Securities 2017-1, has been postponed, according to a source close to the transaction. This follows a recent comment from Fitch (SCI 11 October) which questioned the integrity of the transaction and the ratings assigned by Kroll Bond Rating Agency (SCI 28 September).

    A source close to the deal has refuted claims that the .......

    News 27 October 2017

  • Greek shipping ABS boosts liquidity

    Alpha Bank has successfully completed a US$250m true sale securitisation via Citi, its second such transaction in three years. The non-recourse four-year term deal diversifies liquidity access for the lender, and is one of the very few shipping securitisations globally.

    Greek banks have encountered challenges in accessing interbank market funding following the Greek crisis of 2010-2015. Through this transaction Alpha .......

    News 27 October 2017

  • Timeshare ABS uncapped

    LV Tower 52 has launched a US$157m timeshare ABS, marking the firm's first transaction that Fitch has not capped at single-A. Elara HGV Timeshare Issuer 2017-A is backed by 5,309 timeshare loans tied to a single resort in Las Vegas.

    Fitch and S&P have rated the US$105.48m class A notes at triple-A, US$31.48m class Bs at single-A and the US$20.03m .......

    News 26 October 2017

  • Debut Veros deal markets

    Veros Credit has prepped an inaugural rated US$165.28m subprime auto ABS. The transaction, Veros Auto Receivables Trust 2017-1 (see SCI's deal pipeline), is backed by a pool of 17,328 seasoned subprime auto loan contracts secured mostly by used vehicles.

    Kroll Bond Rating Agency has assigned provisional ratings on the transaction of single-A on the US$128.74m class A notes, .......

    News 24 October 2017

  • Libor replacement a "steep challenge"

    A transition to a replacement reference rate away from Libor by 2021 will be a "steep challenge" within structured finance documentation, according to S&P. The rating agency says the ultimate impact will depend on a number of factors, including whether current IBORs will be maintained for existing transactions until final maturity or whether existing transactions need to shift benchmarks.

    There .......

    News 24 October 2017

  • ABS rating effect explored

    Rating changes can have a significant impact on an ABS bond's price and value. While investors are less reliant on ratings than they were before the financial crisis, rating agencies continue to play a significant role in bond pricing.

    An analysis by TwentyFour Asset Management of the 10-year Portugal sovereign bond reveals that larger rating changes correlate to larger spread .......

    News 24 October 2017

  • ESNs 'not needed yet'

    European Structured Notes (ESNs) have been on the radar for some time and a recent Moody's analysis praises their potential to offer an additional funding tool to banks. However, it remains far from clear that the banks themselves are pushing for this new type of collateralised bond to be introduced.

    In response to the European Commission's call to find new ways .......

    News Analysis 23 October 2017

  • Job swaps round-up - 20 October

    Australia

    Baker McKenzie has recruited Duncan McGrath as a partner in its corporate group in Sydney. McGrath was previously a partner at Gilbert + Tobin, where he established and headed the firm's DCM and securitisation practice. His experience includes leveraged and general finance, peer-to-peer lending, insolvency and restructuring, blockchain and smart contracts.

    EMEA

    Orchard Global Asset Management has hired Shawn .......

    Job Swaps 20 October 2017
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